© 2016 APICS Confidential and Proprietary

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Participant Workbook Page
Table of Contents
Session 1—Inventory Policies
Types and Classifications of Inventory ...........................................................................
1-9
Major Types of Manufacturing Inventory ..................................................................................
1-9
Subclassifications of Manufacturing Inventory.. ......................................................................
1-15
Other Manufacturing Inventory ..................................................................................................
1-17
Service Inventory ....................................................................................................................... .
1-21
Aggregate Inventory Policies ...........................................................................................
1-27
Resolving Sales and Operational Conflicts ...............................................................................
1-27
Inventory Valuation .....................................................................................................................
1-31
Inventory Performance Metrics .................................................................................................
1-39
Item Inventory Policies .....................................................................................................
1-45
Lot Sizing .....................................................................................................................................
1-45
Safety Stock ................................................................................................................................
1-67
© 2016 APICS i Instructor Guide Version 5.4

Detailed Scheduling and Planning
Session 2—Inventory Planning
Order Review Methods .....................................................................................................
2-7
Independent Demand .................................................................................................................
2-9
Dependent Demand .................................................................................................................. .
2-21
Aggregate and Disaggregate Planning ..........................................................................
2-27
Manufacturing Planning and Control .........................................................................................
2-27
MRP II for Service ........................................................................................................................
2-29
Impact of Lean Production Concepts .............................................................................
2-31
Tighter Coupling of Production Activities ...................................................................................
2-31
Lean Production Tools ................................................................................................................
2-37
Accuracy, Storage, Handling, and Tracking ...................................................................
2-43
Inventory Accuracy ......................................................................................................................
2-43
Storage and Location of Inventory Items ..................................................................................
2-59
Handling, Tracking, and Tracing of Inventory ............................................................................
2-65
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Participant Workbook Page
Session 3—Information Used in the Material Planning Process
Information Used in Material Planning ...........................................................................
3-7
Inventory Data ............................................................................................................................
3-7
The Master Production Schedule ..............................................................................................
3-19
Engineering Data ........................................................................................................................
3-29
Characteristics of the Material Planning Process .........................................................
3-33
Material Planning in Different Production Environments ........................................................
3-33
MRP Model .................................................................................................................................
3-41
Planning Process Parameters ...................................................................................................
3-43
Performance Characteristics .....................................................................................................
3-47
© 2016 APICS iii Instructor Guide Version 5.4

Detailed Scheduling and Planning
Session 4—MRP Mechanics: The Basics
Introduction .......................................................................................................................
4-7
MRP Objectives and Functions ..................................................................................................
4-7
The MRP Grid ..............................................................................................................................
4-9
Bills of Material ...........................................................................................................................
4-9
MRP Calculation of Gross and Net Requirements .........................................................
4-13
Gross and Net Requirements and Planned Orders ..................................................................
4-13
Sources of Gross Requirements ................................................................................................
4-13
Summary of MRP Process Logic. ...............................................................................................
4-33
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Participant Workbook Page
Session 5—Using MRP Outputs and Managing Projects
Maintaining the Material Plan ........................................................................................
5-7
Maintain Order Priorities ...........................................................................................................
5-7
Pegging .......................................................................................................................................
5-13
What-If Analysis and Simulation ...............................................................................................
5-21
Revision of Planning Parameters .............................................................................................
5-23
Closing the Loop ........................................................................................................................
5-33
Integration of Lean with ERP/MRP ...........................................................................................
5-37
Project Management .......................................................................................................
5-39
What is a Project?......................................................................................................................
5-39
Project Phases ...........................................................................................................................
5-39
Conceptual (Initiation) Phase ...................................................................................................
5-41
Planning Phase ..........................................................................................................................
5-41
Project Plan Elements ...............................................................................................................
5-43
Execution (Implementation) Phase ..........................................................................................
5-57
Monitoring and Control Phase ..................................................................................................
5-61
Closure Phase ............................................................................................................................
5-63
© 2016 APICS v Instructor Guide Version 5.4

Detailed Scheduling and Planning
Session 6—Detailed Capacity Planning
Influences on Detailed Capacity Planning ....................................................................
6-7
Detailed Capacity Planning ......................................................................................................
6-7
Major Influences on Detailed Capacity Planning ....................................................................
6-7
Flexibility of Capacity and Scheduling. ....................................................................................
6-9
Planning Material or Capacity First. .........................................................................................
6-11
Manufacturing Environment ....................................................................................................
6-13
Capacity-Related Terminology and Concepts ..........................................................................
6-19
Information Used in Detailed Capacity Planning ..........................................................
6-27
Capacity-Related Data ..............................................................................................................
6-27
Load-Related Data and Sources of Load ...........................................................................
6-49
Detailed Capacity Planning Techniques ........................................................................
6-53
System Design Specifications ..................................................................................................
6-53
Simulation and Modeling Techniques .....................................................................................
6-67
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Session 7—Detailed Capacity Management
Capacity Requirements Planning ...................................................................................
7-7
Capacity Management ..............................................................................................................
7-7
Classical Capacity Requirements Planning .............................................................................
7-9
Capacity Management in Process Industries ...............................................................
7-39
Process Industries .....................................................................................................................
7-39
Key Process Industry Characteristics .......................................................................................
7-39
Process Flow Scheduling ..........................................................................................................
7-41
Other Capacity Management Approaches ....................................................................
7-51
Line Balancing in Repetitive Manufacturing ............................................................................
7-51
Capacity Management in Service Industries ...........................................................................
7-55
Performance Measurements ..........................................................................................
7-59
Introduction................................................................................................................................
7-59
Key Performance Measures .....................................................................................................
7-59
© 2016 APICS vii Instructor Guide Version 5.4

Detailed Scheduling and Planning
Session 8—Establishing Supplier Relationships
Factors Determining Supply Relationships ...................................................................
8-7
Mutual Business Value Principles ............................................................................................
8-7
Make-or-Buy Decision ...............................................................................................................
8-9
Purchasing Strategy ..................................................................................................................
8-13
Strategic Sourcing .....................................................................................................................
8-17
Tactical Buying ..........................................................................................................................
8-19
Tactical Buying Versus Strategic Sourcing ..............................................................................
8-19
Financial Viability ......................................................................................................................
8-21
Collaborative Relationships ............................................................................................
8-25
Strategic Alliances ....................................................................................................................
8-25
Supplier Partnerships ...............................................................................................................
8-29
Supply Alternatives and Techniques ..............................................................................
8-33
Sole, Single, or Multiple Sourcing ............................................................................................
8-33
Supplier-Managed Inventories .................................................................................................
8-39
Cross-Functional Teams ...........................................................................................................
8-41
Communication with Suppliers ......................................................................................
8-43
Strategic Communication .........................................................................................................
8-43
Operational Communication ....................................................................................................
8-45
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Session 9—Supplier Partnerships
Product and Process Development ................................................................................
9-7
Time-to-Market ...........................................................................................................................
9-9
Conventional Versus Concurrent Engineering .........................................................................
9-11
Supplier Involvement .................................................................................................................
9-11
Purchasing ........................................................................................................................
9-13
Purchasing Approaches ............................................................................................................
9-13
Types of Contracts .....................................................................................................................
9-15
Supply Chain Acceleration ..............................................................................................
9-19
Total Cost of Ownership. ...........................................................................................................
9-19
Training ......................................................................................................................................
9-23
The Role of Engineering ............................................................................................................
9-23
Supplier Relationship Management .........................................................................................
9-25
Delivery Approaches ..................................................................................................................
9-27
Supplier Rating System .............................................................................................................
9-31
Appendix
Progress Check Answer Sheet........................................................................................ A-1
Bibliography ...................................................................................................................... A-2
Index
Index .................................................................................................................................. Index 1
© 2016 APICS ix Instructor Guide Version 5.4

Detailed Scheduling and Planning
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Instructor Guide Version 5.4 x © 2016 APICS